Chinese Central Bank Calls for Using Green Finance to Achieve Carbon Neutrality

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The People’s Bank of China (PBOC) has issued an official document calling for expediting the growth of green finance to help China achieve its carbon mitigation targets of peak carbon by 2030 and carbon neutrality by 2060.

PBOC issued the “Green Finance Assists Peak Carbon and Carbon Neutrality” (绿色金融助力碳达峰碳中和) directive on 4 March.

The directive states that in future PBOC will “drive the development of a green finance and transitional financial standards system; improve and encourage restraints, develop diversified financial tools, continue to develop local pilot schemes and international cooperation for green finance, and provide vigorous, orderly and effective support to the green, low-carbon transformation of society and the economy.”

PBOC data indicates that as of the end of 2021 China’s foreign and domestic currency green loan balance grew 33% year-on-year to reach 15.9 trillion yuan – the largest volume of green lending in the world.